FirstEnergy Corp. (NYSE: FE) announced the closure of a significant deal on March 25, 2024, involving the sale of a 30% ownership stake in its subsidiary, FirstEnergy Transmission, LLC (FET), for $3.5 billion. The transaction saw Brookfield Super-Core Infrastructure Partners (Brookfield) as the purchaser, with $2.3 billion in cash proceeds received by FirstEnergy at closing.
In a statement, FirstEnergy's President and CEO, Brian X. Tierney, expressed satisfaction with the transaction, highlighting the company's strategic direction: "With the successful completion of this transaction, FirstEnergy is entering a new era of financial strength and growth."
Natalie Hadad, Managing Partner at Brookfield's Infrastructure Group and Co-Head of Brookfield Super-Core Infrastructure Partners, also commented on the partnership, stating, "We are pleased to build on our successful partnership with FirstEnergy with a scaled follow-on investment in FET."
The sale of the 30% interest in FET to Brookfield follows a previous investment by Brookfield in 2022, where they acquired a 19.9% ownership stake for $2.4 billion. This recent transaction brings FirstEnergy's total strategic equity financings to approximately $7 billion, reflecting a share price equivalent of $87 per share.
The $3.5 billion proceeds from the sale will be instrumental in enhancing FirstEnergy's financial position and supporting its ambitious five-year, $26 billion Energize365 grid investment program.
FirstEnergy is a prominent player in the electric distribution sector, serving over 6 million customers across multiple states. The company's transmission subsidiaries manage around 24,000 miles of transmission lines connecting regions in the Midwest and Mid-Atlantic.
The partnership between FirstEnergy and Brookfield underscores a shared commitment to sustainable infrastructure investments and the transition towards a decarbonized economy. The deal signifies a significant step for both companies in pursuing long-term value creation opportunities and supporting essential infrastructure assets.
For more information about FirstEnergy and its initiatives, interested individuals can visit the company's website at www.firstenergycorp.com or follow them on social media platforms.
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